Adani Energy Solutions raises USD 1 bn in share sale, first since Hindenburg
New Delhi: Billionaire Gautam Adani-led group’s power transmission unit has raised USD 1 billion through a share sale, the first public equity raise by the conglomerate since a damning Hindenburg report, which wiped away billions in shareholder value.

Adani Energy Solutions Ltd raised the funds through a qualified institutional placement (QIP) issue, sources with direct knowledge of the matter said.

The QIP, which opened on Tuesday, was oversubscribed three times with demand of about Rs 26,000 crore – making it the largest transaction in India’s energy space.

The issue closed at Rs 1,135 per share, as against issue price of Rs 976 per share or a 14 per cent listing discount.

QIP is an instrument used by listed companies to raise funds from large institutions.

Sources said marquee investors such as GQG, QIP, ADIA and few top names in the US participated in the QIP. Domestic institutions including Bandhan MF, Nomura, 360 India Infoline also participated in the issue.

The fundraise is the first after the group’s flagship firm scrapped a Rs 20,000 crore issue in February last year, following the Hindenburg report alleging accounting fraud and stock manipulation.

Though the group vehemently and repeatedly denied all allegations, listed companies of the conglomerate at one point saw over USD 150 billion of their market value being wiped out.

While the group has largely recovered, a successful QIP is being seen as a powerful vote of investor confidence in the tycoon.